NOFA for Preservation Support Grants and Notice of Paperwork Submission

SUMMARY: This NOFA announces the availability of up to $6 million in

funding for Preservation Support Grants, to promote the ability of

residents of eligible low-income housing to: (1) Participate

meaningfully in the preservation process established by the Emergency

Low Income Housing Preservation Act of 1987 (ELIHPA) and the Low-Income

Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA);

and (2) affect decisions about the future of their housing. This NOFA

also serves to assist the Secretary in discharging the obligation to

notify qualified purchasers of the availability of properties for sale

and otherwise facilitate the coordination and oversight of the

preservation program. A portion of the unobligated funds from the

Preservation Technical Assistance NOFA published September 3, 1992 (57

FR 40570), is made available under this NOFA.

Eligible applicants may apply for a Preservation Support Grant in

one of two categories. First, Outreach and Training Grants are

available to resident-controlled or community-based nonprofit

organizations with experience in resident education and organizing to

conduct community-, city-, or county-wide outreach to identify,

organize, and deliver training to residents of eligible low-income

housing. Second, Preservation Activity Grants are available to State

and local government agencies and nonprofit intermediaries to perform

activities that further the preservation program in their

jurisdictions. These activities may include outreach, training, and

organizational development of unorganized tenants. In a separate NOFA,

the Department has solicited applications from intermediaries to

administer direct technical assistance grant funds to resident and

community groups (FR-3473, published April 6, 1994, at 59 FR 16366).

This document includes information about eligible applicants, the

level of funding available, and HUD's processing of applications, as

well as the selection criteria for grant applicants.

DATES: The expedited deadline for submission of comments on the

paperwork burden associated with this NOFA is: June 24, 1994.

The deadline for submission of applications is August 15, 1994.

Applications must be physically received in the Preservation Division,

Department of Housing and Urban Development, room 6284, 451 Seventh

Street, SW., Washington, DC 20410, by 4:30 p.m., EST, on or before the

due date.

ADDRESSES: Comments on the information collection requirments should

refer to the proposal by name and should be sent to: Joseph F. Lackey,

Jr., OMB Desk Officer, Office of Management and Budget, New Executive

Office Building, Washington, DC 20503.

Upon request, Preservation Support Grant application packages may

be obtained from the Multifamily Housing Clearinghouse, P.O. Box 6424,

Rockville, MD 20850, telephone number: 1-800-955-2232. Please refer to

FR-3613 when requesting an application package.

FOR FURTHER INFORMATION CONTACT: Frank Malone, Director, Office of

Preservation and Property Disposition, Department of Housing and Urban

Development, room 6284, 451 Seventh Street, SW., Washington, DC 20410;

telephone (202) 708-3555. To provide service for persons who are

hearing- or speech-impaired, this number may be reached via TDD by

dialing the Federal Information Relay Service on 1-800-877-TDDY (1-800-

877-8339) or 202-708-9300. (Except for the TDD number, telephone

numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection requirements contained in this NOFA have

been submitted, for expedited processing, to the Office of Management

and Budget (OMB) for review under the Paperwork Reduction Act of 1980

(44 U.S.C. 3501-3520). No person may be subjected to a penalty for

failure to comply with these information collection requirements until

they have been approved and assigned an OMB control number. The OMB

control number, when assigned, will be announced by separate notice in

the Federal Register. Any applicant that completes an application

before the OMB control number is assigned may have to modify that

application in accordance with changes in the application package that

are requested by OMB and agreed to by HUD.

Public reporting burden for the collection of information

requirements contained in this rule are estimated to include the time

for reviewing the instructions, searching existing data sources,

gathering and maintaining the data needed, and completing and reviewing

the collection of information. Information on the estimated public

reporting burden is provided under the Preamble heading, Other Matters.

Send comments regarding this burden estimate or any other aspect of

this collection of information, including suggestions for reducing this

burden, by June 24, 1994, to the Department of Housing and Urban

Development, Rules Docket Clerk, 451 Seventh Street, SW., room 10276,

Washington, DC 20410-0500; and to the Office of Information and

Regulatory Affairs, Office of Management and Budget, Attention: Desk

Officer for HUD, Washington, DC 20503.

Introduction

On July 13, 1993, the Department published a draft Notice of

Funding Availability (58 FR 37819), specifically inviting public

comments on the Department's proposed methodology for implementing the

provisions of section 312 of the Housing and Community Development Act

of 1992 (1992 HCDA), which added sections 251-257, the Low-Income

Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA).

The comment period expired on August 28, 1993. The Department received

a total of 26 comments. Two comments were from legal/advocacy

organizations, eight from low income housing organizations which are

involved in development of and advocacy for affordable housing, nine

were from tenant organizations, three were from community development

corporations, two from community service organizations, one from a

local agency and one from an individual housing consultant.

This NOFA addresses section 254 of LIHPRHA. Comments received

relating to the other added sections were addressed in an earlier NOFA

directed at those sections and published on April 6, 1994 (59 FR 3473).

The first section of this NOFA is a discussion of the public comments

on the section 254 aspects of the draft NOFA and of modifications made

in response to the comments and as a result of additional HUD

consideration. The actual NOFA follows the discussion of public

comments and begins with the section designated ``II. Purpose and

Substantive Description.''

I. Public Comments

A. Priorities

Five commenters recommended that local resident-controlled groups

with experience in organizing receive highest funding priority. The

rationale behind these comments was that assistance to organize by a

tenant-led coalition at the local level enables tenants to share

experiences and provide peer support. Also, one commenter stressed that

organizing and training sponsored by local tenant coalitions protect

against ``sham'' nonprofit purchasers. The Department agrees with these

comments and is giving preference to local resident-controlled groups.

Organizations that receive Outreach and Training grants are required to

demonstrate that they have at least two years experience in resident

organizing and education. Under the Preservation Activity Grant

category, the Department also will give priority consideration to State

and local government agencies and intermediaries that propose to

provide outreach and training and organizational development to

unorganized tenants.

One commenter suggested that in awarding Outreach and Training

grants, HUD should give priority to the local nonprofit entity most

trusted or most likely to be trusted by the tenants. Factors cited by

the commenter that could be used as a measure of trust included

languages spoken by staff, ethnicity, positive history in the immediate

neighborhood, and whether the nonprofit entity has a rural/urban/

suburban focus. The Department believes that establishing a trusting

relationship between recipients and providers of the activity is an

important aspect of a program. However, assessing the level of trust is

judgmental and requires an insight about the relationship between a

nonprofit organization and tenants that would be difficult for HUD

staff to readily discern. The Department believes that a trusting

relationship will evolve when the parties become acquainted, begin to

work together, and plan successful programs.

Two commenters suggested that under the Outreach and Training

grants, organizing should be given priority over education and

training. However, if the purpose of the application is to provide

training, one commenter suggested that preference should be given to

applicants planning training for resident groups and community-based

nonprofit purchasers (as opposed to owner entities, appraisers, and

financial institutions), because resident groups and community-based

nonprofit purchasers generally have fewer resources. Also, it was

suggested that this preference be implemented through a point system

published in the NOFA. Under the Outreach and Training grant category,

HUD will require that successful applicants restrict provision of

training to resident groups and community-based nonprofit purchasers.

However, under the Preservation Activity Grants category, grantees may

use funds to train and educate other groups, such as appraisers,

financial institutions, and owners.

B. Allocation of Funds

The Department received eleven comments recommending that a

majority of the Preservation Support Grant funds be set aside for

resident outreach and training that would involve leadership

development, training, and ongoing support instead of for the provision

of information on LIHPRHA and ELIPHA (without organizational

development, training, and support). Eight commenters suggested that,

at a minimum, 60 percent of the funds should be reserved for outreach

and training. Another commenter advised that the Department allocate 50

percent for each type of Preservation Support Grant, with a mid-year

review for reallocation.

The Department will allocate 50 percent of the Preservation Support

Grant funds to Outreach and Training grants and 50 percent to

Preservation Activity grants. This equal division of the allocation

will maximize opportunities for the Department to produce newly

organized tenant groups, because HUD will give preference, under the

Preservation Activity grant program, to State or local government

agencies or intermediaries that submit applications for outreach and

training and the organizational development of tenants. By including

outreach and training and organizational development for tenants as

preferred activities under Preservation Activity grants, the Department

will be able to ensure that unorganized tenants will be reached if they

live in areas where eligible local tenant controlled groups or

community-based nonprofit organizations do not exist.

One commenter suggested that Outreach and Training grants be

allocated in the $50,000 to $150,000 range annually for up to three

years. The Department agrees that grant amounts should be limited. The

Department will award Outreach and Training grants commensurate with

the scope and size of the market served and the level of outreach and

training described in the application. The maximum amount an applicant

may receive for an Outreach and Training grant will be $150,000

annually, up to a maximum, if warranted, of $450,000 over a three-year

period.

The Preservation Activity grant will be available for, among other

activities, outreach and training and organizational development for

tenants who live in areas where community-based nonprofit organizations

or local resident-controlled groups do not exist. Because applicants

applying for Preservation Activity Grants may propose an activity that

is regional or national in scope and that would require a high level of

funding to be effective, the Department believes that the maximum

amount an applicant may receive for a Preservation Activity Grant

should be $500,000 for proposals that are national in scope, and

$250,000 for proposals aimed at the regional, State or local level.

This NOFA addresses funding levels in detail for each category in

Section II.D.

Two commenters stated that HUD should have two funding rounds

annually for Preservation Support Grants, with one-year grant awards

renewable for up to three years. The Department has determined that the

size of Preservation Support Grants does not merit the task of scoring,

ranking, and awarding grants biannually; it is more cost-effective to

announce the availability of funds on an annual basis. Further,

Preservation Support Grants are awarded on a competitive basis and

cannot be renewed without a new round of competition. However, HUD will

accept Outreach and Training grant applications that propose activities

designed to be completed over a three-year period. Such proposals, if

funded, would receive incremental funding as described in Section II.C

of the NOFA.

Six commenters claimed that basing fund allocation solely on active

Notices of Intent (NOIs) and Plans of Action (POAs) is skewed because

this basis does not directly correlate with preservation sales

activity. Another commenter claimed that HUD's records are not fully

accurate because the basis for the allocation is program volume--

specifically, the sum of ``active Notices of Intent plus the number of

Plans of Action submitted for the State''--so allocations may be

distorted. HUD will allocate grant funds in accordance with the

selection process described in Section IV of this NOFA. The number of

active Notices of Intent and Plans of Action will not be the

determining factor.

Another commenter stated that the allocation under this NOFA should

be made according to eligible projects, not by activity level. However,

HUD will award grants based on proposed activities, not according to

eligible projects. The commenter further stated that the allocation

should include transition rule project owners who have not filed an

NOI. This comment relates to Title II projects, where owners were not

required to file NOIs prior to the 1992 HCDA. Such projects will be

eligible under the provisions of this NOFA.

C. Eligible Activities

One commenter suggested that organizations applying for

Preservation Activity Grants should not be limited by the definition of

eligible intermediaries in the NOFA. The commenter claimed that

preservation activities, such as LIHPRHA training, technical

assistance, data gathering, and clearinghouse functions, can be

performed by an organization that does not have experience in grant

allocation and administration and has not previously served a wide

geographic area. Community-based nonprofits with experience in

education on LIHPRHA and ELIPHA, for example, would be competent to

perform these activities. The Department will limit eligibility for

Preservation Activity Grants to eligible intermediaries and will adhere

to the definition of intermediary used in the July 13, 1993, NOFA,

because it is consistent with section 255(d) of the 1992 HCDA.

This commenter also stated that while preference should be given to

locally based groups, it should be possible for community-based groups

to apply for resident outreach and training grants for a multicounty

area, if a local group is not available. The Department agrees and has

indicated in Section III.C of the NOFA that priority will be given to

established local resident-controlled groups. Next in order of

preference will be established community-based nonprofit organizations,

and, thirdly, city-wide, county-wide or multi-county coalitions of

resident groups applying for Outreach and Training Grants. Further,

community action, legal service, and fair housing counseling agencies;

State and local government agencies; and intermediaries that apply for

Preservation Activity Grants to initiate outreach and training and the

organizational development of tenants will receive priority funding

under that category.

This commenter also stated that organizations should be able to do

both resident organizing and preservation activities, and that the

eligible activities should include legal and financial research on

properties. The Preservation Activity Grants, which will provide

funding for legal and financial research studies on eligible

properties, also will include outreach and training and organizational

development training for tenants as an eligible and priority activity.

If all funds are not awarded to eligible applicants in one grant

category, the Department will utilize unused funds from one grant

category to fund acceptable applications for the other, as indicated in

Section III.A of the NOFA.

Four commenters suggested that the Department clarify that Outreach

and Training Grants are available to support residents in projects

where the owner is not selling. Two commenters want Outreach and

Training Grants available where an owner has made no decision yet, but

is eligible under ELIPHA or LIHPRHA. The Department agrees, and has

stated in Section III.D of this NOFA, that eligible projects include

any Preservation property, regardless of whether an owner has filed a

Notice of Intent.

A commenter proposed that HUD fund the production of information

materials, such as pamphlets, posters, displays, and videos that can be

used for resident outreach and training. The commenter said that some

of these materials already exist, having been produced in States with a

high level of activity. However, HUD could make them widely available

to assistance providers. This would avoid potentially duplicative

efforts nationwide and will assure distribution of accurate

information. The Department accepted this proposal and has included a

provision under the Preservation Activity Grant program for creating

informational materials about the Preservation process for nationwide

distribution as an eligible activity. (See Section III.F of the NOFA

for further details.)

D. Other

Nineteen commenters stated that because of the size of the Outreach

and Training Grant program, and because the activities should be

nonproject specific, HUD should administer that program. The Department

agrees and will administer the awarding and monitoring of both

categories of the Preservation Support Grants program.

One commenter recommended that the Department eliminate the set-

aside for Preservation Support Grants and allow intermediaries to apply

for an amount up to the entire State allocation to be used for Direct

Assistance or Preservation Support Grants, with a maximum of $60,000

for training, outreach, and preservation activities. Beyond that, the

commenter suggested that intermediaries be allowed to propose

activities most appropriate for their jurisdictions. The law provides

for two separate grant categories under Preservation Support Grants and

identifies specific purposes for each one. The intent of the statute is

to allow interested resident groups an opportunity to participate in

the preservation process. While the point raised here is valid, the

Department must adhere to the specifics of the law. Also, the

opportunity for a resourceful resident-controlled group, which may have

access to other supplemental funds to combine with a HUD award to

organize and educate tenants, should not be thwarted by the elimination

of the set-aside for Preservation Support Grants.

One commenter said that HUD should change the Outreach and Training

applicant definition to include a network of advocacy people or other

qualified organizations, not just resident-controlled or resident-based

nonprofits. They stressed that the requirement that the applicant be a

resident-controlled or community-based group was too restrictive and

would prohibit certain tenant groups from participating in the

preservation process. They further questioned the need for the

applicant's board to be resident-controlled and recommended that the

requirement be deleted. The Department appreciates the concerns

expressed; however, the requirement is statutory and cannot be deleted.

One commenter proposed that the NOFA add criteria to ensure that

each community-based organization applicant has an established

mechanism to guarantee responsiveness to tenants. The Department

rejects this suggestion because it believes it would be a burdensome

requirement and difficult to implement and measure. The same commenter

suggested that tenants and other organizations working on these issues

in the community also should have a chance for input on the application

and award. The Department disagrees with this comment. It is unclear

how and when the commenter intended that tenants and other

organizations would comply with this requirement. Also, it is illegal

for HUD to disclose advance information about the applicants in a

competitive grant process.

Finally, this commenter suggested that HUD, as grant administrator,

should provide notice of the application to all nonprofit and tenant

organizations working on preservation in the relevant jurisdiction and

to national and regional groups, and that there should be a limited

time period for other qualified groups to submit a competing

application. The Department believes that this recommendation will

delay decisionmaking and create excessive administrative burdens.

However, under section 102 of the HUD Reform Act, HUD will publish the

names of the recipients of assistance under this NOFA in the Federal

Register.

One commenter stated that this NOFA should have similar

accountability language in Outreach and Training Grant applications as

in the Direct Assistance Grant applications. The Department has

modified the language defining eligible applicants for Outreach and

Training Grants and Preservation Activity grants. The eligibility

requirements now reflect accountability similar to that expected of

Direct Assistance Grant applicants.

Three commenters stated that because the best Outreach and Training

providers will not always be local entities and the statute requires

local entities, the NOFA should be clear that Preservation Activity

Grants should be available for Outreach and Training by regional/

statewide providers. The commenter added that Statewide organizations

should be eligible to receive Outreach and Training grants where there

is a lack of local activity.

The Department is limiting applicants applying for Outreach and

Training grants to local resident-controlled, community-based, city-

wide, county-wide, or multi-county providers, which is consistent with

the statute. However, community action, legal service, and fair housing

counseling agencies; State or local government agencies; and local,

regional, State, and national intermediaries can apply for a

Preservation Activity Grant to conduct outreach and training and

organizational development training for tenants where no local

resident-controlled group or community-based organization exists. With

respect to awards made under this category, the Department will give

preference to eligible regional, State, and local intermediaries over

national nonprofit organizations.

Three commenters stated that HUD should more clearly define what

are eligible activities for State and local governments and nonprofit

intermediaries using Preservation Support Grants. In addition,

commenters suggested that the term ``deemed appropriate'' should be

clarified. Another commenter stated that the NOFA should contain a

broader list of specific activities or examples of ``other activities''

that further the intent of the preservation programs. The Department

agrees with this comment and, in Section III.F of the NOFA, has

clarified and broadened the list of eligible activities for

Preservation Activity grants.

One commenter offered that HUD should clarify that resident-

controlled and community-based nonprofits are treated equally. Three

commenters stated that an overwhelming majority of funding for

Preservation Support Grants should be made available to resident-

controlled organizations. The Department is giving priority to local

resident-controlled groups that apply for Outreach and Training grants,

because the statute clearly indicates tenants/residents as the intended

beneficiaries of this assistance. In cases where no experienced local

resident-controlled group or community-based nonprofit organization

exists, or where one exists, but does not apply or has applied, but its

application was disapproved, then community action, legal service, and

fair housing counseling agencies; State and local government agencies;

or national nonprofit intermediaries may apply for a Preservation

Activity Grant and receive priority consideration to conduct outreach

and training and organizational development of the tenants.

Five commenters stated that HUD should give preferences to Outreach

and Training applicants in the following order: applicants in which the

decisionmaking body is made up entirely of HUD-assisted residents,

those with a majority of HUD-assisted residents, those with a majority

of low-income community members, community-based applicants, and

regionally based applicants. Organizations with no direct experience

should be acceptable where there is no other applicant. One commenter

stated that HUD should spell out a clear priority to maximize funds to

resident-controlled coalitions. Another commenter said that priority

should be for groups with at least three years of organizing experience

demonstrating board and staff accountability to resident groups. The

Department will give preference for Outreach and Training grants to

local resident-controlled groups with at least two years of organizing

experience. The priorities will be reflected in the rating process

described in Section IV.C of the NOFA.

One commenter said that Outreach and Training grants should be

reviewed and selected separately from Preservation Activity grants,

with separate allocations. The Department agrees and has developed a

separate selection process for each of the Preservation Support Grant

categories. This commenter also recommended that intermediaries

administering Direct Assistance Grants should also be able to apply to

do Other Purpose activities; this is especially important in geographic

areas where there are not many experienced entities.

Intermediaries that are eligible to apply to administer Direct

Assistance Grants are also eligible to apply for Preservation Activity

grants. However, intermediaries selected to administer Direct

Assistance Grants, by statute, ``may not provide other services to

grant recipients that are the subject of the grant application and may

not receive payment, directly or indirectly, from the proceeds of

grants they have approved.'' Therefore, administering intermediaries

may not also apply to perform outreach and organizational development

activities for resident groups that may receive technical assistance

funds through the Resident Capacity or Predevelopment Grants that the

intermediary is administering.

Another commenter contended that potential purchasers should be

able to receive these grants when no other qualified applicant has

expressed an interest in the activity. In other words, potential

purchasers would be considered grantees of last resort. The Department

believes that the statute clearly identifies eligible applicants for

Preservation Support grants; the program is not opened to potential

purchasers.

Two commenters stated that Outreach and Training recipients should

not be able to seek an ownership interest in the project. They claim

that such a policy would avoid conflicts of interest with potential

landlords, while enabling residents to organize independently. The

Department agrees with this comment and believes that such a policy

would restrict grantees from also benefitting as potential purchasers

who could receive a direct assistance grant, and certain incentives

under ELIPHA or LIHPRHA, thereby becoming a double recipient of HUD's

Preservation program.

One commenter stated that HUD should allocate unused funds from the

1992 NOFA according to the 90/10 percent formula: i.e., 90 percent to

Direct Assistance Grants and 10 percent to Preservation Support grants.

Another commenter suggested that HUD clarify the exact amount of funds

available from the 1992 NOFA and how they will be divided. The

Department has divided the allocation of unused funds from the 1992

NOFA according to the 90/10 percent formula: 90 percent to Technical

Assistance Grants and 10 percent to Preservation Support Grants.

Three commenters said that more of the unused funds from the 1992

NOFA should be available for Outreach and Training Grants. Another

suggested that all unobligated 1992 NOFA funds be allocated to Outreach

and Training grants. The Department will allocate the portion of the

unused 1992 NOFA funds designated for Preservation Support Grants using

a 50/50 percent formula: 50 percent for Outreach and Training grants

and 50 percent for Preservation Activity grants. Again, the reason for

the equal allocation is to allow the Department to maximize the level

of assistance to, and expand the number of, newly organized tenant

groups, through the provision of outreach and training and

organizational development under Preservation Activity grants. One

commenter also suggested that HUD issue a separate NOFA for Outreach

and Training Grants. The Department is publishing one NOFA for both

categories of Preservation Support Grants because it is more cost-

effective and efficient.

One commenter contended that more money should be made available

for Preservation Support Grants because a great majority of at-risk

projects in the commenter's State are not organized. Some residents are

even unaware that they live in HUD-assisted buildings; few have heard

of LIHPRHA or ELIPHA and even fewer are aware of HUD's Technical

Assistance Grants.

The statute provides that of any amount made available for these

purposes in any appropriations act, 90 percent shall be set aside for

use in accordance with Direct Assistance Grants and 10 percent shall be

set aside for use in accordance with Preservation Support Grants.

However, the Department will give preference to a Preservation Activity

Grant applicant that shows it will take specific steps to inform and

organize potential eligible low-income tenants who are unlikely to be

unaware of the Preservation program (see Section IV.C(2) of this NOFA).

One commenter objected to large national contracts for Outreach and

Training grants. The commenter suggested that $5 million currently set

aside for additional national training should be put into Outreach and

Training grants and administered in a separate NOFA, stating that a

previous contract of $1.5 million to provide training around the

country was ineffective and that small, local contracts are much better

than a large national contract. The commenter further contended that

most resident learning is hands-on, not in hotel workshops. The

Department will administer the Preservation Support Grant program and

will award Outreach and Training grants only to local resident-

controlled or community-based nonprofit organizations that demonstrate

their experience and ability to organize and educate the residents, or

to city, county, or multi-county providers. Where no local resident-

controlled or community-based nonprofit organizations exists, or where

one exists, but does not apply or has applied, but its application was

disapproved, HUD will accept applications to conduct outreach and

training from community action, legal service, and fair housing

counseling agencies; State and local government agencies; nonprofit

intermediaries; or other groups that can demonstrate that they have

three or more years of experience dealing with tenant issues and a

capacity to undertake organizing unorganized tenants.

II. Purpose and Substantive Description

A. Authority and Background

The funding made available under this NOFA is authorized by section

312 of the Housing and Community Development Act of 1992 (Pub. L. 102-

550, approved October 28, 1992) (1992 HCDA), in order to provide

outreach and training to eligible resident groups and to assist the

Department in carrying out its responsibilities under the Emergency

Low-Income Housing Preservation Act of 1987 (Pub. L. 100-242, section

201 of the Housing and Community Development Act of 1987, approved Feb.

5, 1988) (ELIHPA) or the Low-Income Housing Preservation and Resident

Homeownership Act of 1990 (Pub. L. 101-625, section 601 of the National

Affordable Housing Act (NAHA), approved November 28, 1990) (LIHPRHA).

This NOFA combines funding authorized for FY 1993 and FY 1994 in

section 312 of the 1992 HCDA. Funds announced by this NOFA will include

amounts authorized in 1992 that remain unobligated from the

Preservation Technical Assistance Grant Program, resulting in up to a

total of $6 million available under this NOFA.

The origins of LIHPRHA are in ELIHPA. The purpose of ELIHPA was to

preserve low-income affordability restrictions on certain HUD-insured

or assisted multifamily projects. ELIHPA authorized the use of

incentives to encourage owners to retain low-income affordability

restrictions or to transfer the property to purchasers who would agree

to retain those restrictions. The fundamental principles underlying

ELIHPA were that the low-income housing should be preserved for the

intended beneficiaries and that owners should be guaranteed a fair and

reasonable return on their investments.

ELIHPA was intended to be a temporary measure that would allow

Congress time to fashion a permanent program for the preservation of

existing low-income housing projects. This permanent program is

LIHPRHA, which replaced ELIHPA except to the extent that section 604 of

NAHA provides a transition option for certain owners. The Department's

regulations implementing these statutory provisions were published as

an interim rule at 57 FR 11992 (April 8, 1992), and were revised in

interim rules at 57 FR 57312 (December 3, 1992), 58 FR 4870 (January

15, 1993), and 58 FR 3384 (July 13, 1993, including requirements in

this NOFA that were imposed by Title III of the 1992 HCDA). All

references in this NOFA to sections 248.1 through 248.183 are to those

sections as set out in these interim rules.

B. Allocation Amounts

The purpose of this NOFA is to make $6 million in grant funds

available to eligible applicants to perform resident outreach and

training, organizational development, education activities, and

preservation assistance activities. These funds will be allocated

equally between Outreach and Training Grants and Preservation Activity

Grants. One million dollars ($1 million) of these grant funds are from

unobligated funds from fiscal year 1992 Preservation Technical

Assistance Grant funds. Both grant categories are described below.

C. Grant Categories

There are two types of Preservation Support Grants: (1) Outreach

and Training Grants; and (2) Preservation Activity Grants.

Outreach and Training Grants are available for established

community, city-wide, county-wide, or multi-county coalitions of

resident-controlled groups or community-based nonprofit organizations

with experience in resident education and organizing, to identify and

organize residents of eligible low-income housing.

Preservation Activity Grants are available to community action,

legal service, and fair housing counseling agencies; State and local

government agencies; and State, regional, or national nonprofit

intermediaries, for the purpose of conducting outreach and training and

organizational development for unorganized tenants or carrying out

other proposed activities, described in Section III.F of this NOFA,

that further the preservation program in their jurisdictions.

D. Grant Amounts

(1) Outreach and Training Grants. HUD will accept Outreach and

Training applications that propose a term of from one to three years.

The Department will limit the grant amount to $450,000 for successful

applications that propose three-year activities. The maximum annual

distribution for such grants will be $150,000, which must be obligated

or expended by the grantee prior to the distribution of additional

funds. Day-to-day draw-down limits and procedures will be described in

the application package.

Outreach and Training grants will be awarded in amounts reflective

of the overall program design, capacity, and need, as measured by the

criteria in Section IV.C of this NOFA.

(2) Preservation Activity Grants. At the regional, State, and local

levels, the Department will make a one-time award, not to exceed

$250,000, for proposals designed to address outreach and training and

organizational development for tenants or other types of Preservation

activities. Applicants applying for Preservation Activity grants that

propose outreach and training and organizational development for

tenants, or other eligible preservation activities that are national in

scope and require a high level of funding to be effective, may receive

a one-time award in an amount not to exceed $500,000. However, the

Department will give preference to eligible regional, State, and local

intermediaries over national nonprofit organizations. A national

nonprofit organization must document its ability to accomplish proposed

tasks on a national level and describe what resources it has to carry

out the activity effectively and with success. Grantees in receipt of

Section 254 funds may not use these funds to replace local or regional,

public or private funding initiatives that are already in place.

The level of funding will be commensurate with the described level

of complexity of activities, geographic scope, and number of potential

participants. Activities must be completed in a timely manner and may

not, in any case, exceed a three-year period.

The Department may terminate the grant if a grantee fails to

complete the task within a reasonable time period. In determining the

reasonableness of the time period, HUD will consider the complexity of

the activity and the resources available to accomplish the task.

III. Eligibility Information

A. General

Preservation Support Grants are meant to fund activities that will

further the Preservation process and are carried out by: local

resident-controlled or community-based nonprofit organizations, in the

case of Outreach and Training grants; and community action, legal

service, and fair housing counseling agencies; State and local

government agencies; and State, regional or national intermediaries, in

the case of Preservation Activity grants. Resident-controlled groups

are comprised primarily of residents living in HUD-assisted projects.

Outreach and Training grant applications will be reviewed

separately from Preservation Activity grant applications. However, if

all funds are not awarded to eligible applicants in one grant category,

the Department will have the option to utilize unused funds from that

grant category to fund acceptable applications for the other. The

Department will give priority to resident-controlled and community-

based organizations that apply for Outreach and Training Grants. In

competitive situations where resident outreach and training activities

are proposed under both categories of the Preservation Support Grant

(e.g., a local government or non-community-based nonprofit organization

proposing a resident outreach and training program within the same

jurisdiction as the resident-controlled group), applications from a

Preservation Activity Grant applicant will only be considered in the

balance of a jurisdiction not served by an Outreach and Training Grant

recipient.

Grantees will be selected based on eligibility thresholds;

applicant type, capacity, and experience; and jurisdictional needs, as

described below in this NOFA.

B. Eligible Recipients

Eligible recipients of Outreach and Training and Preservation

Activity grants will be tenants living in eligible Title II or Title VI

projects. In addition, funds provided in this NOFA may be available to

provide assistance to tenants living in property disposition projects

that are subject to section 203(c)(2)(D) of the Housing and Community

Development Amendments of 1978 (12 U.S.C. 1701z-11), as amended by

section 101(b) of the Multifamily Housing Property Disposition Reform

Act of 1994 (108 Stat. 342; Pub. L. 103-233, approved April 11, 1994).

C. Eligible Applicants--Outreach and Training Grants

An organization applying to do resident outreach and training must

demonstrate that it is a nonprofit organization, has at least two years

of experience in resident organizing and education, and is either

resident-controlled with a majority of the board consisting of

residents of HUD-assisted housing or is a community-based organization

(CBO) that meets the definition of a CBO in 24 CFR 248.101, with a

majority of its activities taking place at the community level.

Applications from newly formed resident-controlled groups and CBOs that

have applied for tax-exempt status under section 501(c) of the Internal

Revenue Code of 1986 on or before the date of application may be

considered as long as the organization is approved before the effective

date of the grant agreement. Also, newly formed and otherwise eligible

organizations may submit joint applications with eligible organizations

that are tax-exempt.

Priority will be given to local resident-controlled groups. Next in

order of preference will be established community-based organizations

and, thirdly, city-wide, county-wide, or multi-county coalitions of

resident groups with a majority (51 percent or more) of Board

participation by HUD tenants and that can provide documentation that

they have experience working with ELIPHA and/or LIHPRHA programs. Where

there is no application from such groups, community action, legal

service, and fair housing counseling agencies; State and local

government agencies; and intermediaries may apply for Preservation

Activity grants to initiate outreach and training and the

organizational development of tenants.

D. Eligible Activities--Outreach and Training Grants

Outreach and Training Grants are available for the following

activities:

Identifying residents and resident groups living in

eligible preservation projects. Eligible projects include any property

that is or could become available for sale and meeting the definition

of ``eligible low-income housing'' at 24 CFR 248.101 or 248.201,

regardless of whether an owner has filed a Notice of Intent.

Providing outreach and training to tenants identified by

local Field Offices where HUD staff may not be available to perform

such tasks due to budgetary constraints. These activities could include

attending Preservation Capital Needs Assessment (PCNA) exit

conferences, obtaining translation of the owner's Notice of Intent,

providing other service where needed for PCNA exit conferences, or

attending other resident meetings.

Organizing residents of eligible low-income housing to

participate effectively in the preservation process.

Performing outreach, training, and counseling, which may

include sound housing management, maintenance, and financial

management, to residents and resident groups living in eligible

preservation projects.

Delivering project-based, community-, city-, or county-

wide training programs on ELIHPA, LIHPRHA, resident participation, and

forms of resident homeownership options.

E. Eligible Applicants--Preservation Activity Grants

(1) Description of applicants. HUD will accept applications from

community action, legal service, and fair housing counseling agencies;

regional, State, and local government agencies; nonprofit

intermediaries; or other groups that can demonstrate that they have

both three or more years of experience dealing with tenant issues and a

capacity to undertake organizing unorganized tenants. A national

nonprofit organization must have at least five years of similar

experience. Eligible applicants fall into one of the following

categories:

(1) State and local housing agencies. This category includes public

housing agencies, community redevelopment agencies, other agencies that

administer a community's Comprehensive Housing Affordability Strategy

(CHAS), and State housing finance authorities.

(2) Regional, State, and local nonprofit organizations that must

have been in existence for at least three years prior to the date of

application and either are classified as exempt organizations under

section 501(c)(3) of the Internal Revenue Code of 1986 or are otherwise

a tax-exempt entity.

(3) National nonprofit intermediaries that have been in existence

for at least five years prior to the date of application and are

classified as exempt organizations under section 501(c)(3) of the

Internal Revenue Code of 1986. An intermediary applying for

Preservation Activity Grant funds must:

Have as a central purpose of its organization the

preservation of low-income housing and the prevention of displacement

of low- and moderate-income residents;

Not receive direct Federal appropriations for operating

support;

Meet the standards of fiscal responsibility established in

OMB Circulars A-110 and A-122 or, if a State or local agency, 24 CFR

part 85 and OMB Circular 87; and

Have a record of service to low-income individuals or

community-based nonprofit housing developers in multiple communities.

(2) Limitations on Intermediaries. Intermediaries that are eligible

to apply to administer Technical Assistance Grants may be eligible to

apply for a Preservation Activity Grant pursuant to the following

prohibition. Intermediaries selected to administer Technical Assistance

Grants, pursuant to Section 255(a) of the 1992 HCDA, ``may not provide

other services to grant recipients that are the subject of the grant

application and may not receive payment, directly or indirectly, from

the proceeds of grants they have approved.'' Therefore, administering

intermediaries may not also apply to perform outreach and

organizational development for tenants, or other types of Preservation

support activities for resident groups that receive technical

assistance funds through the Resident Capacity or Predevelopment Grants

that the intermediary is administering.

Also, unlike intermediaries that are eligible to administer Direct

Assistance grants, those intermediaries applying for Preservation

Activity Grants may not serve as pass-through intermediaries. That is,

they are limited to using grant funds to carry out eligible grant

activities and may not administer the allocation of HUD grant or loan

funds.

F. Eligible Activities--Preservation Activity Grants

Preservation Activity grants will be available to:

Provide outreach and training and organizational

development for ``unorganized'' tenants, as provided by resident-

controlled groups and CBOs under the Outreach and Training category in

Section III.C of this NOFA, if no experienced local resident-controlled

group or community-based nonprofit organization exists or one exists,

but does not apply or has applied, but HUD disapproved its application;

Provide outreach and training to tenants identified by

local Field Offices where HUD staff may not be available to perform

such tasks due to budgetary constraints. These activities could include

attending Preservation Capital Needs Assessment (PCNA) exit

conferences, obtaining translation of the owner's Notice of Intent,

providing other service where needed for PCNA exit conferences, or

attending other resident meetings.

Undertake pilot programs that assist HUD field staff to

expedite the preservation process or otherwise conserve staff

resources;

Streamline the preservation process via the activities

described in this Section;

Educate parties outside the Department (including, but not

limited to appraisers, financial institution officials, State and local

government officials, community groups, and owner entities) about the

preservation process;

Establish preservation clearinghouses as a resource to

resident organizations, community groups, and potential purchasers;

Create informational materials about the preservation

process for nationwide distribution;

Perform legal and financial research studies on eligible

properties; and

Provide support activities that would otherwise further

the Preservation program established under ELIHPA and LIHPRHA.

G. Ineligible Activities--Both Categories

Activities ineligible for funding under either category (Outreach

and Training or Preservation Activity) of Preservation Support grants

include:

Purchase of land or buildings or any improvements to land

or buildings;

Entertainment, including associated costs such as food and

beverages, but not including refreshments and supplies for

organizational meetings;

Payments of fees for lobbying services;

Activities funded from other sources;

Activities already being performed outside the scope of

this NOFA; and

Activities completed prior to the date funding is approved

under this NOFA.

IV. Selection Process

A. Screening

The Multifamily Preservation Division staff in Headquarters will

screen each application to determine whether it meets the technical

requirements for application submission contained in this NOFA and the

application package. If the application meets the technical

requirements, it will be reviewed and ranked according to the selection

criteria in Section IV.C of the NOFA. After screening the application,

the Preservation Division will fax information about the applicant and

application, such as name, project number, and experience the applicant

identifies it has with HUD and the Preservation Program, to the Chief,

Loan Management Division, in the HUD Field Office with jurisdiction

over the applicant's geographical area. The Loan Management staff will

review the information and provide comments about the information and

the extent of its experience, if any, with the organization. Within

sixty days from the application deadline, the Preservation Division

will notify an applicant of its selection or rejection. Grantees will

be required to sign a grant agreement.

B. Threshold Review--Correction of Deficient Applications

(1) Threshold Review. The Department will perform a threshold

review of the applications to ensure completeness and will request

applicants to correct any nonsubstantive deficiencies. Nonsubstantive

deficiencies are those that are not integral to the application's

review, such as a certification.

(2) Revisions. If an application is found to be deficient in a

nonsubstantive manner, the Department will inform the applicant of such

deficiency within 15 days after the application deadline and the

applicant will have seven days to submit revisions. If an application

is substantively deficient at the time of application deadline, the

application will be rejected.

C. Selection Criteria

HUD will review each Preservation Support Grant application and

assign up to 100 points in each category (Outreach and Training Grants

and Preservation Activity Grants), in accordance with the criteria

described in this Section.

In competitive situations where resident outreach and training

activities are proposed under both categories of Preservation Support

Grants (e.g., a local government or non-community-based nonprofit

organization proposing a resident outreach and training program within

the same jurisdiction as the resident-controlled group), applications

from a Preservation Activity Grant applicant will only be considered in

any part of a jurisdiction not served by an Outreach and Training Grant

recipient.

After rating, the Department will rank the applications according

to score and will fund them in rank order, reserving the option, if

needed, to establish a minimum score of 60 points for funding. Grants

will be awarded based upon the highest scores, which represent the best

overall assessment of the potential of the proposed work activities for

achieving the principal objective of this competition: to promote the

ability of residents to participate meaningfully in the preservation

process and to enable State or local housing agencies or intermediaries

to conduct outreach and training and organizational development for

unorganized tenants and undertake other activities that further

preservation programs.

Applications that pass the technical threshold review will be rated

as follows:

(1) Outreach and Training Grants. Under this category, the

Department will require successful applicants to restrict provision of

outreach and training to resident groups and community-based nonprofit

purchasers. In addition, local resident-controlled groups will receive

priority rating over community-based organizations and city-wide,

county-wide, or multi-county coalitions of resident groups.

(a) Capacity is reflected in the qualifications or capabilities of

the applicant (maximum points: 50). The capability of the applicant to

conduct community-, city-, or county-wide outreach and training

programs to identify and organize residents of eligible low-income

housing within a reasonable time period, within budget, and in an

effective manner, as demonstrated through past performance. In

assigning points for this criterion, HUD will consider:

Direct Experience. An applicant under this category must

provide documentation that they have experience working with ELIPHA

and/or LIHPRHA programs. The applicant or key staff must show that it

has at least two years of experience in this area of work to receive

points under this criterion. An applicant also may demonstrate this

experience by the participation of or affiliation with board members or

consultants. The Department will rate the application according to the

degree to which the applicant describes its ability to organize

residents and conduct educational workshops or describe how it will

obtain such experience. This criterion will be measured by previous

experience and success in outreach, recruitment, counseling,

organizational development, and training (* * * up to 20 points).

Preservation Experience. The degree of knowledge,

experience, and expertise the applicant can show that it has, or will

obtain, with ELIHPA and/or LIHPRHA programs, to ensure compliance with

relevant program requirements and to enable newly organized tenant

groups to participate in these Preservation programs. This criterion

will be measured by previous experience (* * * up to 20 points).

Management Capacity. The extent to which the applicant can

ensure through its organization and management plans that the activity

for which it applied will be well-managed; carried out in a timely

manner; and protected from waste, fraud, or other abuse of funds, based

on past performance with similar programs (* * * up to 5 points).

Fiscal Responsibility. The ability of the applicant or key

staff to handle, manage, and account adequately for financial resources

and to use acceptable financial control procedures, demonstrated

through past performance of the applicant entity or key staff with

Federal, State, or local funds, or an explanation of how such

capability will be obtained (* * * up to 5 points).

(b) Level of Resident Participation in the Organization. Priority

will be given to established resident-controlled groups and nonprofit

community-based organizations that have a majority (51 percent or more)

of Board participation by tenants in HUD-assisted project(s) (maximum

points: 20). HUD will rate the applications on a scale that gives the

highest number of points to organizations with the highest number of

HUD-assisted tenants on the Board.

(c) Need. The degree of need for the proposed outreach and training

programs to identify and organize tenants of eligible low-income

housing, demonstrated by the number of eligible projects in the

community (maximum points: 15). In measuring this criterion, HUD will

consider the number of eligible projects in the area and the number of

tenants that the applicant identifies that would benefit from the

activity.

(d) Program Quality and Feasibility. The comprehensiveness of the

proposed plan and the potential of the applicant for developing a

successful and effective program (maximum points: 15). HUD will

consider the extent to which the proposed program represents a sound,

comprehensive, and responsive plan for developing outreach and training

efforts, organizing tenants, and providing housing counseling. Program

quality will be evaluated in terms of whether the proposed program

activities meet the Outreach and Training program objective.

(2) Preservation Activity Grants. Under this category, the

Department will give preference to eligible regional, State, and local

intermediaries over national nonprofit organizations. Also, the

Department will give priority to any applicant that shows its intention

to initiate outreach and training and the organizational development of

low-income tenants where no resident-controlled or community-based

organization exists. Organizations such as community action, legal

service, and fair housing counseling agencies must demonstrate that

they have three or more years experience dealing with tenants and the

capacity to undertake tenant organization. Regional, State, and local

government agencies will be required to document their ability to

implement the proposed activity on a regional level, and intermediaries

that propose to undertake outreach and training and organizational

development for tenants or carry out other proposed support activities

on a national level must demonstrate their ability to accomplish such

tasks.

(a) Capacity is the qualification or capabilities of the applicant

to develop and implement: Successful and effective outreach and

training and organizational development for tenants; and other

Preservation support activities, as described in Section III of this

NOFA (maximum points: 50).

Preservation Experience. The degree of knowledge,

experience, and expertise the applicant can show that it has, or will

obtain, with ELIHPA and/or LIHPRHA programs, to ensure compliance with

relevant program requirements and enable newly organized tenant groups

to participate in these preservation programs. This criterion will be

measured by previous experience (* * * up to 20 points).

Direct Experience. The applicant or key staff must show

that it has at least three years of experience in the area of work for

which it is applying, or describe how it will obtain such experience.

This criterion will be measured by previous experience and success in

the applicable activity (* * * up to 20 points).

Management Capacity. The extent to which the applicant can

ensure through its organization and management plans that the activity

for which it applied will be well-managed; carried out in a timely

manner; and protected from waste, fraud, or other abuse of funds, based

on past performance with similar programs (* * * up to 5 points).

Fiscal Responsibility. The ability of the applicant or key

staff to handle, manage, and account adequately for financial resources

and to use acceptable financial control procedures, demonstrated

through past performance of the applicant entity or key staff with

Federal, State, or local funds, or an explanation of how such

capability will be obtained (* * * up to 5 points).

(b) Jurisdictional Needs. This criteria will be based on the

Department's determination of how well the applicant addresses specific

unmet needs in the jurisdiction. This assessment will be based on the

number of current preservation cases in the Multifamily Preservation

Processing System (MPPS). The Department will also take into

consideration the number of applications received from that

jurisdiction. This assessment may include availability of Department-

sponsored or other training for residents and other groups (maximum

points: 20 points).

(c) Program Quality and Feasibility. The comprehensiveness of the

proposed plan and the potential of the applicant for developing a

successful and effective program (maximum points: 30). HUD will

evaluate the extent to which the proposed program: represents a sound,

comprehensive, and responsive plan for developing any of the activities

described in Section III.F of this NOFA and meets the Preservation

Activity Grant Program objective.

Commitment. The extent of the applicant commitment and

responsiveness to the needs and problems of the tenants (* * * up to 10

points).

Outreach, Recruitment, and Selection Activities. The

level, nature, and comprehensiveness of proposed outreach, recruitment

(including specific steps to be taken to attract potential eligible

participants who are unlikely to be aware of the program), and

selection strategies, as measured by: (i) the extent to which the

applicant has developed special outreach efforts to recruit eligible

low-income tenants; and (ii) the extent to which the proposed

participant selection system supports these efforts (* * * 20 points).

V. Grant Application Process

A. Application Packages

Upon request, Preservation Support Grant application packages are

available from the Multifamily Housing Clearinghouse, P.O. Box 6424,

Rockville, MD 20850, telephone number: 1-800-955-2232. Please refer to

FR-3613 when requesting an application package.

For other questions about the Preservation program, please contact

the Preservation Division, Room 6284, Department of Housing and Urban

Development, 451 7th Street, SW., Washington, DC 20410; telephone (202)

708-2300, or the contact numbers at the beginning of this NOFA.

B. Deadline for Submission

Applications for Preservation Support Grants must be physically

received by the Multifamily Preservation Division no later than 4:30

p.m. (EST), on August 15, 1994. No facsimiles will be accepted. Any

application received after that time will not be accepted for

processing and will be returned to the applicant. Any revisions made in

accordance with Section IV.B(2) of this NOFA may be transmitted by

facsimile; however, the original revision must be subsequently

submitted by mail or in person.

C. Submission Requirements

An applicant must provide a completed application, including the

following, as applicable:

(1) OMB Standard Forms 424 and 424B;

(2) Summary of proposed activities and jurisdiction;

(3) Information about the applicant, including its history, its

staff and qualifications, and its experience;

(4) Summary of plan to carry out proposed activities;

(5) Evidence of tax-exempt status, if applicable;

(6) Certification that assistance provided under this NOFA will not

be used to supplant or duplicate other resources for the proposed

activities. For purposes of this paragraph, ``other resources'' means

resources provided from any source other than under this NOFA;

(7) Other disclosures, certifications, and assurances (including

Drug-Free Workplace certification), as required under the law and this

NOFA;

(8) Certification that the applicant and any of its affiliates do

not have, and will not seek, an ownership interest in any developments

that are to be assisted with these funds; and

(9) Other information and materials as may be described in the

application kit.

VI. Other Matters

Public Reporting Burden

The information collection requirements contained in this notice

have been submitted to the Office of Management and Budget under the

Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). The Department

has determined that the following provisions contain information

collection requirements.

----------------------------------------------------------------------------------------------------------------

x x

Number of respondents Frequency of response Hours per response = Burden hours

----------------------------------------------------------------------------------------------------------------

120.................... 1 6 720

----------------------------------------------------------------------------------------------------------------

Environmental Impact

In accordance with 40 CFR 1508.4 of the regulations of the Council

on Environmental Quality and 24 CFR 50.20(b) of the HUD regulations,

the policies and procedures contained in this notice relate only to

technical assistance and, therefore, are categorically excluded from

the requirements of the National Environmental Policy Act.

Federalism Impact

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has determined that the policies

contained in this notice will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

Federal government and the States, or on the distribution of power and

responsibilities among the various levels of government. As a result,

this notice is not subject to review under the Executive Order 12612.

Family Executive Order

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this notice does not have

potential for significant impact on family formation, maintenance, and

general well-being, and, thus, is not subject to review under the

Order. No significant change in existing HUD policies or programs will

result from promulgation of this notice, as those policies and programs

related to family concerns.

Section 102 of the HUD Reform Act: Documentation and Public Access

Requirements; Applicant/Recipient Disclosures

Documentation and public access requirements. HUD will ensure that

documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

upon which assistance was provided or denied. This material, including

any letters of support, will be made available for public inspection

for a five-year period beginning not less than 30 days after the award

of the assistance. Material will be made available in accordance with

the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing

regulations at 24 CFR part 15. In addition, HUD will include the

recipients of assistance pursuant to this NOFA in its quarterly Federal

Register notice of all recipients of HUD assistance awarded on a

competitive basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice

published in the Federal Register on January 16, 1992 (57 FR 1942), for

further information on these documentation and public access

requirements.)

Disclosures. HUD will make available to the public for five years

all applicant disclosure reports (HUD Form 2880) submitted in

connection with this NOFA. Update reports (also Form 2880) will be made

available along with the applicant disclosure reports, but in no case

for a period less than three years. All reports--both applicant

disclosures and updates--will be made available in accordance with the

Freedom of Information Act (5 U.S.C. 552) and HUD's implementing

regulations at 24 CFR part 15. (See 24 CFR part 12, subpart C, for

further information on these disclosure requirements.)

Section 103 HUD Reform Act

HUD's regulation implementing Section 103 of the Department of

Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3537a),

codified as 24 CFR part 4, applies to the funding competition announced

today. The requirements of the rule continue to apply until the

announcement of selection of successful applicants.

HUD employees involved in the review of applications and in the

making of funding decisions are limited by 24 CFR part 4 from providing

advance information to any person (other than an authorized employee of

HUD) concerning funding decisions, or from otherwise giving any

applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted under 24 CFR part 4.

Applicants who have questions should contact the HUD Office of

Ethics (202) 708-3815 (voice/TDD). (This is not a toll-free number.)

The Office of Ethics can provide information of a general nature to HUD

employees, as well. However, a HUD employee who has specific program

questions, such as whether particular subject matter can be discussed

with persons outside the Department, should contact his or her Regional

or Field Office Counsel, or Headquarters counsel for the program to

which the question pertains.

Section 112 of the Reform Act

Section 112 of the HUD Reform Act added a new section 13 to the

Department of Housing and Urban Development Act (42 U.S.C. 3537b).

Section 13 contains two provisions dealing with efforts to influence

HUD's decisions with respect to financial assistance. The first imposes

disclosure requirements on those who are typically involved in these

efforts--those who pay others to influence the award of assistance or

the taking of a management action by the Department and those who are

paid to provide the influence. The second restricts the payment of fees

to those who are paid to influence the award of HUD assistance, if the

fees are tied to the number of housing units received or are based on

the amount of assistance received, or if they are contingent upon the

receipt of assistance.

Section 13 was implemented by 24 CFR part 86. If readers are

involved in any efforts to influence the Department in these ways, they

are urged to read part 86, particularly the examples contained in

Appendix A of the rule.

Any questions about the rule should be directed to the: Office of

Ethics, room 2158, Department of Housing and Urban Development, 451

Seventh Street, SW., Washington, DC 20410-3000. Telephone: (202) 708-

3815 (voice/TDD). (This is not a toll-free number.) Forms necessary for

compliance with the rule may be obtained from the local HUD office.

Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the

disclosure requirements and prohibitions of section 319 of the

Department of Interior and Related Agencies Appropriations Act for

Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the

implementing regulations at 24 CFR part 87. These authorities prohibit

recipients of federal contracts, grants, or loans from using

appropriated funds for lobbying the Executive or Legislative branches

of the federal government in connection with a specific contract,

grant, or loan. The prohibition also covers the awarding of contracts,

grants, cooperative agreements, or loans unless the recipient has made

an acceptable certification regarding lobbying. Under 24 CFR part 87,

applicants, recipients, and subrecipients of assistance exceeding

$100,000 must certify that no federal funds have been or will be spent

on lobbying activities in connection with the assistance.

Authority: 42 U.S.C. 4101 et seq.; 42 U.S.C. 3535(d).

Dated: May 24, 1994.

Nicolas P. Retsinas,

Assistant Secretary for Housing--Federal Housing Commissioner.

[FR Doc. 94-14344 Filed 6-13-94; 8:45 am]

BILLING CODE 4210-27-P